Sunday, November 18, 2012

In the near
term, the company is expected to secure the lead role in even more mega
projects such as the two new KVMRT lines to be unveiled in 2013 and more
railway jobs nationwide over the next few years from Nov 2012.

Its ability to land large contracts, given the ambitious plans for
infra buildup put forward by the government, has the company on close watch by
the investment community. And with the GE around the corner, the change in
company’s shareholding dynamic has captured investor attention. While
some Gamuda directors and substantial shareholders were paring their equity
holdings, MD Datuk Lin raised his stake to 3.25% as at Nov 5, 2012. Lin raising
his stake in Gamuda shows his commitment to and confidence in Gamuda. But as
his five year term expires in June 2013, the market has also been wondering
whether Lin will stay on for another term.

Market observers viewed that Lin intends to renew his contract for
another five years from 2013 as he anticipates more opportunities in the
construction and real estate sectors. He acquired more shares in Gamuda (Nov
2012) as he believes the current (Nov 2012) valuations are attractive.

It is also expected that the company to post record profits in the next
three years from 2012 with a positive outlook to translate into gains in the
company shares.

Gamuda’s fundamentals remain strong with an existing order book
of rm4.8 billion and prospects of clinching over rm10 billion worth of jobs in
2013.

The feasibility study on additional KVMRT lines within the
Klang Valley
should be finalized by end 2012. Gamuda tips the government to approve the new
lines by 1QFY2013.

For now (Nov 2012), the market will be closely watched whether
Lin’s contract is renewed to ensure management continuity.

The company property projects include the Kota Kemuning and Horizon
Hills in Johor and real estate jobs in
Vietnam .